Am I throwing away money with mailers??? HELP!!!

[Armegi Gil]

Hi All,

Closed my 1st deal from the the 1st 1,000 mailers I sent out to absentee owners mid May.

The 2nd mailer (1,000YL's) produced less than 12 calls and my last mailer produced 3 hang ups and a not so mentally stable person.

I purchase my leads on ListSource and my cost per 1,000 YL's is $680.00 which is not as much as some wholesalers are paying but it does add up and more than anything, it is time without production.

As far as I know, mailers are the quickest way to start generating sales but I am starting to think that I am doing something wrong. I have money to invest in my business, however I don't want to throw it away and it seems that is precisely what I am doing.

Any and all suggestions welcome... thanks for any help!

-AMG

[Michael Quarles]

@Armegi Gil 

Your question or statement was; Am I throwing away money with mailers??? HELP!!!

The simple answer is YES... we all do.. I mail a ton of my own mail I although it would be a fun experience, not really, to have every mailer create a response I am certainly hoping they all don't. 

With marketing in general you'll find that a 8 to 12% marketing cost is appropriate. After time that cost percentage will diminish to 4-6%. 

A friend of mine was having his sons help him stuff envelopes and prepare his mail and his youngest asked him how many houses he wanted to buy. He replied one. His son then asked; then why don't we just send out that letter? Very logical in theory however hard to quantify. 

We send out buckets of mail to introduce ourselves to that one very motivated seller. The one who will give us 50,000 for our trouble and fear. 

Are there better methods for marketing... Absolutely.... If an investor would implement the laws of the six degrees of separation they would be more successful than any direct mail marketing. The issue is that this media for most is not one which they are comfortable with doing. 

Getting to your direct mail issues.

In your market you will want to stay below median values and stay at 3 bedrooms or below. Use the filter of 30% or more equity as the algorithms in your market haven't reset yet. Also stay to SFR with 4 years ownership or more and if your budget doesn't allow for all of the list then take that number to 12 years and make one of the occupants 65 years or older.

As for percentages of response. In your market you have a 4 to 6 time multiplier so keep that in mind. 

Mix up your mail piece and consider using Postcards over YellowLetters if only able to send 1000. And send them... Your market is  a 17 touch cycle so dont be afraid to hit the list. 

Most importantly be prepared to ask the questions which uncover motivation. Most wont just come out and tell you they will sell at a discount so we have to pry a little. 

And finally WAIT for the deal to manifest... Most investors think busy work equates to profitability and it doesn't. 

Good hunting is ahead...